A Real Estate Agency Wants to Compare the Appraised Values

question 74

Essay

A real estate agency wants to compare the appraised values of single-family homes in two cities in Michigan. A sample of 60 listings in Lansing and 99 listings in Grand Rapids yields the following results (in thousands of dollars):
-(A) Is there evidence of a significant difference in the average appraised values for single-family homes in the two Michigan cities? Use 0.05 level of significance.
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(B) Have any of the assumptions made in (A) been violated? Explain.
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(C) Construct a 95% confidence interval estimate of the difference between the population means of Lansing and Grand Rapids.
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(D) Explain how to use the confidence interval in (C) to answer (A).

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Definitions:

Limited Partners

Investors in a partnership who are not involved in the daily operations of the business and whose liability is restricted to the amount of their investment.

Co-owners

Individuals or entities that hold ownership rights together in a property or asset, sharing the benefits as well as responsibilities.

Sole Proprietorship

A business structure where a single individual owns and operates the business, making them solely responsible for its debts and liabilities.

Dissolves

The act of officially ending the existence of an entity such as a corporation, partnership, or marriage.